General Terms and Conditions

General Terms and Conditions of Lease

Algeco OY Finlands filial i Sverige, Varggatan 25B, 749 40 Enköping

General

If not otherwise agreed upon in writing, the following terms and conditions shall apply to all leases, including repeat orders, for which Algeco is the lease giver (further below “The Lessor”). By receiving the leased goods, the Tenant accepts the Terms and Conditions of Lease. The Tenant ensures that at the time of the order and after the order, his financial position is such that it allows him to fulfill his obligations under the lease contract. Algeco has separate Terms and Conditions of Sale for the company’s sale activities.

“Exclusions” means any loss resulting from a risk which is not an Insured Risk, willful misconduct by the Tenant or its employees agents or contractors, any loss of lease object revealed only when an inventory is made, loss of generating equipment in or connected to powered buildings, bodily injury, glass breakage, civil or foreign war, nuclear damage, terrorism, embargo / destruction upon request of government or public authority, wear and tear, theft from an unsecure or unguarded building or Site (as defined under section 6:6), fraud, dishonesty, business interruption, indirect damages, loss damage or re-instatement of ground in or around the Site and losses or damage resulting from the incorrect use and maintenance of the lease object.

“Insured Risk” means fire, act of vandalism (by a person other than the Tenant, its employees, agents and contractors), and theft from a secure or guarded Site.

1. Quotations

All quotations of the Lessor are unbinding, which means that the Tenant is requested, by means of the unbinding quotation, to first place a quotation of his own for the Lessor to accept or to decline. Thus it is possible to change the contents of the lease and the duration, the price and the other elements of the contract until the Lessor accepts the quotation made by the Tenant.

2. Lease period

1. The lease period begins on the date agreed by the Tenant and the Lessor to be the date of the beginning of the lease. In deviation from this, the lease period can, however, begin at the real time of delivery of the lease object if the object to be leased, for reasons the Lessor is accountable for, is delivered to the Tenant at a point of time later than agreed.

2. The lease period ends at the earliest seven (7) days after the Lessor has received a written notice of termination of the lease. The lease period cannot, however, end before the end of the first month of lease, as calculated from the point of time agreed to be the time at which the lease period begins.

3. If the contract of lease is made for a specified minimum period, it cannot be terminated prior to the expiration of such agreed minimum period. For the event that the lease objects are returned prior than agreed, the Tenant shall immediately pay all monies owing at the time of early termination or return and the lease fee, including possible additional costs, for the remainder of the entire minimum period agreed upon in the lease contract.

3. Delivery and return of the lease object

1. Unless otherwise separately agreed upon, delivery and return of the lease objects is carried out at the Tenant’s cost and risk. The Lessor cannot be held liable for delayed delivery or collection of the lease objects by the transportation company, not even in a case in which the transportation company has received its assignment from the Lessor.

2. The Tenant must ensure that the lease object is unloaded and loaded duly and professionally when delivered, or returned after the lease period. The costs entailed shall be borne by the Tenant even if the unloading and loading was carried out by the Lessor or by order of the Lessor.

3. The Tenant is obligated to arrange in advance a suitable, stable and even site and/or foundation on which the lease object can be erected.

4. The Tenant is obligated to arrange in advance ready-to-use electrical, water and wastewater connections for all modules. The Tenant shall be responsible for the removal of these connections after termination of the lease contract.

4. Lease fee

1. The Tenant shall pay the lease fee on a monthly basis, within period agreed in the order. Incomplete months shall be paid for on the basis of the number of calendar days on which the lease contract was in force.

2. If the contract of lease is made for a period of over six (6) months, or the Tenant uses the lease object for more than six (6) months, the Lessor is entitled to raise the agreed lease fee in a reasonable proportion following each consecutive six (6) month period. The higher lease fee shall be charged from the beginning of the month following the notice to the Tenant of the increase of the lease fee.

3. If the monthly lease fee or some other fees to be paid by the Tenant are delayed for more than eight (8) days, or the Tenant fails to fulfill one or more of his obligations under the lease contract, the Lessor shall be entitled to:

a) demand payment of all lease fees not yet due, and/or

b) terminate the lease contract without notice, and immediately withdraw the lease objects at the Tenant’s expense, and/or

c) enforce all other claims of the Lessor under the contract of lease or on the basis of law. Nevertheless, the Tenant shall meet all obligations still in force under

this contract.

4. The Lessor is entitled to claim default interests for late payment, as specified in the Interest Act.

5. The Lessor is entitled to claim from the Tenant SEK 50 for every written request for payment made after the payment has become overdue. The Tenant must pay these costs apart from default interests referred to in Section 4.

5. Delay and Force Majeure

If the Lessor’s performance is delayed or defective as a result of Force Majeure or slight negligence, the Tenant shall not be entitled to claim damages from the Lessor. The Lessor’s liability for delay or for defective performance shall in no case exceed the amount of SEK 25500 for an individual order or for any part of the lease contract.

6. Lease object

1. The Tenant shall use the lease objects with care and protect them against overuse. The Tenant shall adhere to all regulations pertaining to ownership, use or preservation of the lease objects, and arrange for care, service and maintenance of the objects.

2. The Tenant shall, at his cost, keep the lease objects in the required condition, and purchase, exchange and install new parts as spare parts whenever needed.

3. The Tenant shall

a) only use the device in accordance with its purpose.

b) assign, at his cost, all repairs that may be needed due to an improper handling of the lease object or on the basis of technological changes.

c) keep the downpipes and roofs of the hire items free of leaves, snow loading and other dirt.

4. Only with written consent of the Lessor shall the Tenant be allowed to perform additional installations on the lease objects or change them otherwise.

5. The Tenant agrees not to remove, cover or make otherwise illegible the markings on the lease objects that clearly display the Lessor as the owner of the objects leased.

6. The lease object shall be erected on a site agreed upon by the Tenant and the Lessor (the “Site”). The Tenant shall only with the Lessor’s written consent be entitled to change the site of the object or of parts of the object. Responsibility for a change of site lies with the Tenant.

7. In order to check the serviceability of the lease object and the manner in which the object is used, the Lessor shall be entitled to visit the lease object during normal office hours.

8. The lease object may for temporary purposes only be connected to the ground or to buildings or technical equipment. The lease object shall not become part of a lot of land, building or technical system and it must be disconnected at the end of the lease period.

9. If the lease object shall serve a principal matter owned by external parties, the Tenant must tell the respective owner that the object is erected on its site for temporary purposes only.

10. The Tenant shall protect the lease object at his own cost from seizure from whatever legal grounds, by third parties. The Tenant shall inform the Lessor without delay about any such seizure with the handover of all necessary documents. He shall notify the Lessor without delay about applications for compulsory public auctions or compulsory administration of the plot of land, on which the item is sited, or connected buildings or facilities.

11. Responsibility for accidental destruction, loss, theft, damage or premature wear and tear of the lease objects lies with the Tenant – notwithstanding the reasons that may have caused such damages. Events like the above do not free the Tenant from his liability to pay the lease fees and any additional costs agreed upon.

12. The Tenant must notify the Lessor immediately of events referred to in Section 11 above. Within a reasonable period of time granted by the Lessor, the Tenant shall, as chosen by the Lessor:

a) either repair the lease object at his cost and return it to the condition specified in the contract, or

b) replace the lease object with other objects of a similar value, or

c) pay the Lessor as compensation net cash all sums, which the Tenant still owes the Lessor according to number 10.

13. If the above only refers to a part of the lease objects, it is applied correspondingly. This does not change the lease fee agreed upon.

14. Apart from what is required by compelling legislation, the Lessor shall not be liable for any damages that the lease object may, directly or indirectly, cause to the Tenant or to third parties.

15. The Tenant must pay all fees, taxes (the property tax, e.g.) and other expenses resulting from keeping the lease object on its site during the lease period and also thereafter, if the lease object is still being used by the Tenant. The Tenant must, in due time and at his own cost, apply for all formal permissions, particularly the building license, required for erecting the lease object. Moreover, the Tenant must inform the Lessor about all legal or official regulations, principles or requirements the neglect of which might jeopardize the use or the erection of the lease object.

16. Without the Lessor’s consent, the Tenant cannot allow third parties to use the lease object. Lease fees payable by sub-Tenants shall be paid exclusively to the account of the Lessor. To ensure the receivables of the Lessor, the Tenant shall transfer to the Lessor all his claims for the payment of lease fees receivable from any sub-Tenants.

17. If required by the weather, the Tenant shall take appropriate action to prevent damage by frost to cables etc. until the Lessor collects the lease object for good.

7. Damage waiver program

1. The Damage Waiver Fee, plus VAT, will be automatically charged to the Tenant in addition to the lease fee until valid proof of insurance is provided by the Tenant to the Lessor in accordance with section 8:2.

2. The Tenant’s timely payment of the Damage Waiver Fee relieves the Tenant of liability in excess of the Damage Waiver Excess for any loss or damage to any lease object caused by Insured Risks (“Damage Waiver”). However, the Damage Waiver does not provide coverage for the Exclusions or any other circumstances not covered by the Insured Risks and the Tenant remains liable for any loss or damage to any lease object arising from Exclusions and any other circumstances not covered by the Insured Risks.

3. If any lease object is lost or damaged, before the Tenant can limit its liability under this section 7, it must:

a) have paid the Damage Waiver Fees invoiced and any other amounts due and owed to the Lessor;

b) pay the Damage Waiver Excess;

c) demonstrate that it has taken reasonable precautions against loss, damage, theft and forced entry;

d) notify the Lessor in writing of any loss or damage to the lease object within five business days of becoming aware of such damage and have submitted a theft notification form from the Lessor;

e) if required by the Lessor, deliver to the Lessor, to its reasonable satisfaction, evidence of the loss or damage (including any police reports in the event of theft, vandalism or forced entry), within ten business days of becoming aware of such event; and

f) not be in breach, or not have breached, any term of the lease contract including these terms and conditions.

4. The Damage Waiver does not provide coverage for the Exclusions or any other circumstances not covered by the Insured Risks and the Tenant remains liable for any loss or damage to any lease object arising from Exclusions and any other circumstances not covered by the Insured Risks.

5. The parties acknowledge and agree that the Damage Waiver in this section 7 is not insurance and therefore does not cover any general liability incurred by the Tenant (including any loss or injury to third parties) or its or any third party’s use of the lease object, any consequential loss incurred by the Tenant or any third party, or any of the Exclusions.

8. Insurance

1. The Tenant shall throughout the duration of the lease contract and until the lease object is returned to the Lessor’s control (without prejudice to any liability of the Tenant to the Lessor) at its own expense insure the lease object with a reputable insurance company against all risks, loss or damage including all risks of third party and public liability arising out of ownership presence or use of the lease object in an amount not less than the full new replacement value of the lease object.

2. The Tenant shall promptly upon obtaining insurance in accordance with section 8:1, supply copies of the insurance certificate and the relevant insurance policies or other insurance confirmation acceptable to the Lessor and proof of premium payment to the Lessor to confirm the insurance arrangements. If the Tenant fails to effect or maintain any of the insurances required under these terms and conditions, the Lessor shall be entitled to effect and maintain the same, pay such premiums as may be necessary for that purpose and recover the same as a debt due from the Tenant and to be paid on demand.

3. The interest of the Lessor in the lease object shall be noted on the policy of insurance. Such policy shall:

a) name the Lessor as payee;

b) not be capable of cancellation or amendment by the insurers (at the request of the Tenant or otherwise) other than by 30 days’ prior notice in writing to the Lessor; and

c) provide that the insurers shall waive any breach of warranty under the policy of insurance against the Lessor.

4. The Tenant shall (so far as necessary) irrevocably authorize the insurers to pay on an indemnity basis to the Lessor all monies payable under the said insurance policy in respect of any loss or damage to all or any part of the lease objects.

5. The Tenant shall not use or allow the lease object to be used for any purpose not permitted by the terms and conditions of any policy of insurance for the time being relating to the lease object nor do or allow to be done any act or thing which may cause such insurance to be invalidated.

6. In the event of any loss of or damage to all or any of the lease objects the Tenant shall give immediate notice to the Lessor and shall make or assist in the making of any appropriate claim or claims under the said insurance policy in such manner as the Lessor shall require and shall not in any manner settle or compromise any such claim without the prior written consent of the Lessor.

7. The Tenant shall promptly reinstate or repair at its own expense lease objects which have not become a total loss or a constructive total loss and shall continue to pay the agreed lease fees in respect of such lease objects during such reinstatement or repair. All insurance monies received in respect of such loss shall be applied (at the Lessor’s discretion) in or towards payment to the Lessor of any amount for the time being due and outstanding from the Tenant to the Lessor under the lease contract; and in or towards reimbursing the Tenant for the costs of such reinstatement or repairs.

8. In the event that during the term of the lease contract any item of the lease objects (the “Destroyed Equipment”) becomes a total loss or a constructive total loss (whether as a result of it being lost, destroyed, damaged beyond repair, confiscated or otherwise) the lease of the Destroyed Equipment under the lease contract shall cease, but the agreed lease fee shall remain due and owing for the remainder of the lease period and subject to the terms of the lease contract. The Lessor may, at its discretion, apply any insurance proceeds received towards the replacement of the Destroyed Equipment and/or towards the payment of the agreed lease fees (whether or not due) and all other monies due and owing to the Lessor by the Tenant. Any surplus insurance proceeds after the application of this section 8:8 shall be paid to the Tenant.

9.

Should the Lessor learn essential information about the Tenant, such as confiscation, executory measures or bill protests, that may jeopardize the Tenant’s ability to meet his contractual obligations, the Lessor shall, even in the case that the lease object has not yet been handed over to the Tenant, be entitled to resort to the rights referred to in the above section 4:3.

10. Return of the lease object

1. After termination of the lease contract, the Tenant shall immediately, at his own cost and risk, return the lease object to the nearest location of the Lessor. The lease object must be returned by insured transport and in a condition comparable to the condition the lease object was in at the time of the delivery, as specified by the delivery note, taking, however, into account the normal wear caused by use of the object according to the contract of lease, and the agreement referred to in Section 6.

If, after the Tenant has declared the object of lease to be released, the Lessor undertakes to transport the object back according to the contract, the Tenant must at his cost and risk guarantee that the lease objects can be collected from the date onwards on which the notice of release was made, without there being a separate agreement as to the time of collection. In order for the lease object to be ready for collection, all connections that the Tenant or the Lessor may have performed on the lease object must be removed, notwithstanding the nature of such connections.

If the objects of lease are connected to objects owned by the Lessor or an external company, the Tenant must guarantee, at his own cost and risk, that the objects of lease will be separated from the equipment system without risk. Should it for other reasons not be possible to collect the object from an agreed place, the Tenant shall, at his cost and risk, transport the object to a suitable place from which it can be collected without difficulty. The transfer of the lease object to a new location must first be agreed upon with the Lessor. The Lessor must consent to the transfer in writing. The Tenant shall be held liable for any damage until the Lessor has collected the object.

Should the Lessor despite the possibility to collect the lease object, fail to collect the object within four weeks from the date on which the notice of release was made, the Tenant shall be freed from the obligations referred to above. The possibility to collect the lease object must, however, have existed during the entire four-week period.

As long as the lease object cannot be returned for reasons that the Tenant is accountable for, these terms and conditions shall continue to apply, save that the Tenant shall be considered to be renting the lease object on a rolling month to month basis and after that time and at such frequency as the Lessor determines, the Lessor may in its absolute discretion adjust the lease fee to its then prevailing rates for leases on a month to month basis. The Tenant shall always pay to the Lessor the expenses that, for reasons the Tenant is accountable for, accrue for the Lessor due to the Tenant’s delay in return. The amount to be paid shall correspond to the real costs, inclusive of Value Added Tax.

2. All necessary repairs and spare parts as well as cleaning and renewing work will be paid by the Lessor against a presentation of the costs. Such costs and the cost of the return transport, as far as the transport was carried out by the Lessor or a transport company assigned by the Lessor, shall, after reception of the corresponding invoices, be paid by the Tenant in net without deductions. The Tenant carries the risk for the return transport. Should the return transport not be possible due to weather or similar reasons, the additional costs accrued shall be paid by the Tenant.

3. If necessary, the Lessor shall certify the return of the lease object, provided that the lease object is serviceable and in a proper condition when returned.

4. Should the producer price index for diesel oil increase or decrease by more than ten (10) percent, as compared to the time of delivery of the lease object, the Lessor shall be obligated or entitled to proportionately reduce or increase the cost of transport originally agreed upon.

11.

Any additional agreements must be made in writing.

12.

Should any of the terms and conditions of this contract of lease or of the General Terms and Conditions of Lease, not be valid for whatever the reason, it shall not in any way affect the other terms and conditions of the contract.

13.

Should the Tenant purchase the lease object during or after the lease period, the lease object remains the property of the Lessor until all lease fees, purchase invoices and other bills have fully been paid.

14. Data security

In connection with the leasing activities, the Lessor shall save and electronically process the information needed in the framework of the contractual relationships and for the purpose of attending to customers.

15.

Any disputes between the Tenant and the Lessor shall primarily be solved, if possible, by means of negotiations between the Parties. These terms and conditions shall be interpreted in accordance with Swedish law.